Stumbled Upon Licensing Issues, Binance Terminates Service In Israel

Binance ceased operations in Israel. (Vadim Artyukhin-Unsplash)

JAKARTA – The world's largest crypto exchange, Binance, has reportedly stopped operating in the Israeli market. The suspension was enforced after Israel's financial regulator checked the crypto exchange's licensing.

According to a Thursday, February 17 report from Israel-based news outlet Globes, the Capital Markets, Insurance and Savings Authority requested that Binance provide information about the services it provides to Israelis as well as any licenses under which it operates.

The regulator, who is in charge of handling licenses for crypto companies, has reportedly never received an application from Binance allowing the exchange to do business in Israel.

"Following the capital market intervention, Binance has at this stage stopped marketing to Israel and all activities are focused on Israel until we examine licensing issues," the Israel Capital Markets Authority said.

Binance no longer lists Israeli Shekels as a payment option for buying crypto, a feature introduced in February 2020. However, at the time of publication, the platform's job listing still includes seven vacancies to work with exchanges in Israel.

In July 2021, Binance CEO and founder Changpeng Zhao said he wanted the exchange to work with local regulators as it set up offices in other countries. However, Binance still faces regulatory scrutiny from various authorities in Italy, Malaysia, Poland, Germany, UK, Cayman Islands, Thailand, Canada, Japan, Singapore, and other countries.

Those countries have issued statements claiming that the exchanges are operating illegally. With a population of around one million people, Israel seems to welcome the introduction of digital assets under the proper regulatory framework.

President Isaac Herzog received an NFT that represented the moment he took the oath of office in July, and the country's central bank has been exploring the introduction of the digital Shekel for nearly five years.